In the last week of expiry will there be any increase in margin requirement if I sold call or put of a stock?

Support Desk
1

In the last week of expiry will there be any increase in margin requirement if I sold call or put of a stock?

2

Yes. But not significantly.

Here is an example for you, the margin requirement increases for the same strike option as it gets closer to expiry.

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3

Hey @vMeJnNeU0u,

Yes! There will be a substantial increase in the margin requirement during the last week of expiry on selling options of a stock as the physical settlement will be due.

  • 10% of Delivery margins computed on Expiry – 4 EOD (Friday)
  • 25% of Delivery margins computed on Expiry – 3 EOD (Monday)
  • 45% of Delivery margins computed on Expiry – 2 EOD (Tuesday)
  • 100% of Delivery margins computed on Expiry – 1 EOD (Wednesday) (As per our policies).

Hope this clarifies!

4

Hey @HqikyjkG9o,

Index options are not considered for Physical settlement. Hence, there is no substantial increase in the margin requirement. Kindly, go through the answer above for clarity. Thanks : )

5

I asked because Zerodha ask for 50% of the contract value and every broker is different ..your website does not have support portal where one can check for answers like this.